Forty-three percent of investors have the impression that the marijuana industry is growing at a rapid pace and 34% believe there’s a lot of uncertainty in the cannabis stock market and the industry as a whole.
Opposition to cannabis legalization has been on a decline for years, with a majority of Americans in favor of some form of legal marijuana, recreational and/or medicinal. Surveys such as Pew’s are often used as a barometer for the subject of legalization, but the sentiment surrounding cannabis’s status can be measured through a different lens — investor confidence.
A recent survey by personal financial news site GOBankingRates.com found that 1-in-10 people have already invested in marijuana companies and another 40% would consider it in the future. About a third of respondents said they would consider investing in pot stocks if marijuana were made federally legal, with 35% saying they’d never invest regardless of legal status.
The sentiment against marijuana stocks was highest among those aged 65 and older, and a higher proportion of men compared to women respondents would consider investing in cannabis. Over 64% of investors aged 65 and over said they would never consider investing in cannabis stocks and forty-one percent of women responded that they would never consider pot stocks, while only 32% of men felt the same way.
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The volatility of the current cannabis market is not lost on investors; only 10% of those surveyed considered marijuana stocks as safe investments. Much of the uncertainty is likely due to the continued criminalization on the federal level. This status casts a pall of uncertainty on any firm operating in the U.S., despite complying with local marijuana laws.
Forty-three percent of investors have the impression that the marijuana industry is growing at a rapid pace and 34% believe there’s a lot of uncertainty in the cannabis stock market and the industry as a whole.
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Other reasons holding investors back from putting money into pot stocks include the current stigma surrounding the industry, the small number of public companies, profitability, and lack of recommendation from friends, family, or a financial advisor.
Even if open to investing in cannabis stocks, most, about 57%, would invest under $5,000 in the sector. So while two-thirds of respondents felt marijuana should be federally legal, not all of those pro-pot investors are quite yet ready to include cannabis in their financial portfolio.
